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Sony Will Shift PlayStation 2 Production To China

Blomberg.com reports that Sony Corp. plans to move production of its PlayStation 2 console to China next year, as the rivalry from Microsoft Corp.'s Xbox forces the world's largest video-game console maker to tighten control on costs and prices. Sony Computer Entertainment Inc. currently makes half of its PlayStation 2s at two plants in Japan. Sony expects to move all of its production to Chinese plants run by Taiwanese companies Hon Hai Precision Industry Co. and Asustek Computer Inc. next fiscal year, Sony Computer spokesman Koichiro Katsurayama said. Shifting PlayStation 2's assembly operations to China may allow Sony to increase profit margins at its video-game unit, which accounted for 36 percent of the company's operating profit in the three months ended Dec. 31. China's lower labor costs may also give Sony room to cut the PlayStation 2's retail price, giving Sony an edge over Microsoft's Xbox.

Blomberg.com reports that Sony Corp. plans to move production of its PlayStation 2 console to China next year, as the rivalry from Microsoft Corp.'s Xbox forces the world's largest video-game console maker to tighten control on costs and prices. Sony Computer Entertainment Inc. currently makes half of its PlayStation 2s at two plants in Japan. Sony expects to move all of its production to Chinese plants run by Taiwanese companies Hon Hai Precision Industry Co. and Asustek Computer Inc. next fiscal year, Sony Computer spokesman Koichiro Katsurayama said. Shifting PlayStation 2's assembly operations to China may allow Sony to increase profit margins at its video-game unit, which accounted for 36 percent of the company's operating profit in the three months ended Dec. 31. China's lower labor costs may also give Sony room to cut the PlayStation 2's retail price, giving Sony an edge over Microsoft's Xbox.